FDI rises 18% to $35.18 billion in H1FY26; down 11.1% in Q2 from Q1

Inflows from US double

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Foreign direct investment (FDI) in India rose 18 per cent to $35.18 billion during April-September this fiscal year, while the inflow from the US more than doubled to $6.62 billion during the first half of this financial year, according to government data released on Monday.

 

Foreign Direct Investment (FDI) during April-September FY24 stood at $29.79 billion. During the September quarter of 2025-26, the inflows increased by over 21 per cent year-on-year to $16.55 billion.

 

Total FDI, which includes equity inflows, reinvested earnings and other capital, increased to about $50 billion during the first six months of this financial year as against $42.3 billion in the same period of 2024-25.

 

Inflows from the US rose to $6.62 billion during the latest six-month period from $2.57 billion recorded in April-September 2024-25.

 

Singapore was the largest source of FDI during the period, contributing $11.94 billion. It was followed by the US, Mauritius ($3.47 billion), UAE ($2.33 billion), Cayman Islands ($1.83 million), the Netherlands ($1.63 billion), Cyprus ($1.4 billion), and Japan ($1.21 billion).

 

The US is the third-biggest investor in India with investments of $77.27 billion between April 2000 and September 2025. The top investment source is Singapore ($186.82 billion), followed by Mauritius ($183.66 billion) in the same period.

 

Sector-wise, inflows during April-September this fiscal in computer software and hardware rose to $9 billion, services ($5 billion), trading ($2.78 billion), automobile ($1.57 billion), construction development ($233 million), non-conventional energy ($2 billion) and chemicals ($534 million).

 

Among states, the data showed, Maharashtra received the highest inflow of $10.57 billion during the period.

 

It was followed by Karnataka ($9.4 billion), Tamil Nadu ($3.57 billion), Haryana ($3.22 billion), Gujarat ($2.24 billion), Delhi ($2.3 billion), and Telangana ($1.14 billion).

 

The government has put in place an investor-friendly FDI policy, under which most sectors are open for 100 per cent overseas inflows through the automatic route.

 

The government has undertaken reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single-brand retail trading.

 

From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.

 

During the last financial year, FDI equity inflows were $50.01 billion, while the overall FDI stood at $80.6 billion.